On Thursday, American fast casual restaurant chain that’s based in New York City, Shake Shack (NYSE: SHAK), reported strong Q1 earnings of $0.08 beating consensus EPS of $0.05 and revenue of $54.17M (+43.3% Year to Year) that beat analysts’ expectations of $52.06M.
The company's “Same-Shack” sales, which is defined as the number of domestic company-operated Shacks opened for at least a year, increased by nearly 10% vs. 11.7% growth of last year’s Q1. The company’s comparable Shack base, comprised of 20 vs. 13 Shake Shacks compared to its Q1 of last year.
Their Average weekly sales, which is calculated by dividing overall Shake Shack sales by the number of operating weeks for all Shacks in operation during the period, for domestic company-operated Shacks reported $90,000 compared to $89,000 of Q1’s 2015, an increase of 1.1%, mainly due to vigorous traffic progression, increased prices, and concrete performance across the present Shack base.
Shake Shack's newly added addition to the menu, the fried chicken sandwich, was a huge success in drawing attention to new customers along with regulars. Overall traffic was up over 7%, not just based solely on the new sandwich.
-Total revenue between $245 million and $249 million (vs. $237 million to $242 million).
-Same-Shack sales growth between 4% and 5% (vs. between 2.5% and 3.0%).
-16 (vs. 13) total new domestic company-operated Shacks to be opened in 2016.
-Seven licensed Shacks to be opened under the Company's current license agreements in the U.K., Middle East and Japan.
-Approximately 75 to 100 basis points (vs. 100 to 150 basis points) of deleverage in labor and related expenses as a percentage of Shack sales, on a year-over-year basis.
-Adjusted pro forma effective tax rate between 40% and 41% (vs. 43% and 44%).
Shares of SHAK were up over 6% as of Friday afternoon.